In the event of a conflict of laws, which law prevails for a Bens Soft Pretzels franchise?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
__________________________ By: _______________________________ Printed Name: ______________________ Printed Name: ______________________ Title: _____________________________ Title: _____________________________ Date: _____________________________ Date: _____________________________
NORTH DAKOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Item 17, Additional Disclosures. The following statements are added to Item 17:
Pursuant to the North Dakota Franchise Investment Law, any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota is void. Any mediation or arbitration will be held at a site agreeable to all parties. The laws of the State of North Dakota will govern any dispute.
Any general release the franchisee is required to assent to is not intended to nor shall it act as a release, estoppel or waiver of any liability Ben's Soft Pretzels Franchising Corporation may have incurred under the North Dakota Franchise Investment Law.
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, the governing law in the event of a conflict depends on the franchisee's location. For instance, the North Dakota Addendum explicitly states that any provision requiring franchisees to consent to the jurisdiction of courts outside North Dakota or to consent to the application of laws of a state other than North Dakota is void, and the laws of North Dakota will govern any dispute. Similarly, the Minnesota Addendum indicates that nothing in the Franchise Disclosure Document or agreements can reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. These addenda supersede the standard franchise agreement.
For franchisees in North Dakota, several standard provisions in the Bens Soft Pretzels Franchise Agreement are modified or deemed void. These include clauses related to jurisdiction of courts, application of laws, waivers of exemplary and punitive damages, waivers of trial by jury, and consent to termination or liquidated damages. The North Dakota Addendum ensures that North Dakota law and the rights of franchisees under the North Dakota Franchise Investment Law are protected, regardless of what the standard agreement stipulates.
For franchisees in Minnesota, similar protections are in place. The Minnesota Addendum ensures compliance with Minnesota Statutes, safeguarding the franchisee's rights and preventing the franchisor from requiring litigation outside Minnesota or enforcing waivers of jury trials or consent to liquidated damages. These state-specific addenda highlight the importance of franchisees understanding the specific legal protections afforded to them based on their location, as the standard Bens Soft Pretzels Franchise Agreement is subject to these state law modifications.